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i need help someone please Questions Problem 10-15 Algo (Some Useful Excel Functions for Modeling) Question 4 of 5 2 Hint(s) Check My Work (2

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Questions Problem 10-15 Algo (Some Useful Excel Functions for Modeling) Question 4 of 5 2 Hint(s) Check My Work (2 remaining) 3 O A put option in finance allows you to sell a share of stock at a given price In the future. There are different types of put options. A European put option allows you to sell a share of stock at a given price, called the exercise price, at a particular point in time after the purchase of the option. For example, suppose you purchase a six-month European put option for a share of stock with 5 an exercise price of $26. If six months later, the stock price per share is $26 or more, the option has no value. If in six months the stock price Is lower than $26 per share, then you can purchase the stock and immediately sell It at the higher exercise price of $26. If the price per share in six months is $22.50, you can purchase a share of the stock for $22.50 and then use the put option to immediately sell the share for $26. Your profit would be the difference, $26 - $22.50 = $3.50 per share, less the cost of the option. If you paid $1.00 per put option, then your profit would be $3.50 - $1.00 = $2.50 per share. The point of purchasing a European option is to limit the risk of a decrease in the per-share price of the stock. Suppose you purchased 200 shares of the stock at $28 per share and 70 six-month European put options with an exercise price of $26. Each put option costs $1. (a) Using data tables, construct a model that shows the value of the portfolio with options and without options for a share price In six months between $20 and $29 per share in increments of $1.00. What is the benefit of the put options on the portfolio value for the different share prices? For subtractive or negative numbers use a minus sign even if there is a + sign before the blank (Example: -300). If you answer is zero, enter "0". Share Price Benefit of Options $20 275X $21 220* $22 S 165 X $23 110 $24 55 $25 5 $26 $27 -55 $28 -55 $29 -55 X (b) Discuss the value of the portfolio with and without the European put options. The lower the stock price, the more beneficial the put options. The options are worth nothing at a stock price of $ 25 or higher There Is a benefit from the put options to the overall portfolio for stock prices of $ 24 or lower V X Hide Feedback Partially Correct

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